All Forum Posts by: Shuo Wang

But based on what you've explained you still have a cash flow purchase, and Austin isn't a bad investment just don't speculate on equity. Takes one city policy to pass or a big company to leave to create an equity void

Yeah, with 30% down I have about 20 bucks per month positive cash flow, not great but it could be worse. The crazy property tax is the reason

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Originally posted by @Rowen Burney:

@Justin Larese couldn't have said it better. Never base a deal solely on the hope that there will be appreciation. Do you really want thousands of dollars hinging on whether or not high up executives choose to expand in a certain city? I definitely wouldn't. You seem like a smart guy who is doing well financially so I think you could find a much better deal with much better cash flow and lower LTV than 50%. You may have to look harder in your market or even switch to a smaller market but I'm sure you can do it. best of Luck!

Thanks Rowen! I guess that was a rookie's mistake. Only issue is that I already signed a purchase contract and sent our earnest money of $2500, guess that would take a while to figure out.

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Originally posted by @Scott Jensen:

What is the rent you are expecting for the house? Putting down 50% in order to make it cash flow does not sound like you have a good deal.

It's around $1800, yeah it looks like a bad one, but I'm betting on future tech companies (apple, google) to bring more positions to the city and appreciation might be able to cut it, but I could be totally wrong though.

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Originally posted by @Justin Larese:

You can have a 2nd home thats a "vacation" house, and be able to rent it out without being struck with investment rates. I am looking at rentals now and was going to go with a 2nd home, but area is too close and would have to be considered an investment. So now I am shopping for a multi family as a new primary home which gives me the lowest rates possible, stipulation is one unit will be my personal unit until I reach minimum resident requirements. I would tell them you want a 2nd home as a vacation get away, so the underwriter can approve it. Bc you showed up with 50% they probably assume you meant investment and prolly wouldnt care about the rates.

Thanks Justin! This is very good info. I'll talk to another lender and ask for the rate.

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Originally posted by @Ryan Harsche:

@Shuo Wang my first question would be, why do you want to put such a large percentage down? But secondly, I personally would go with the 10/1 arm option. But I would refinance the entire mortgage into that option. The only issue is that you have to decide what you will do in 10 years when the fixed rate period is up. Do you plan to pay it off, refinance or sell the home? You have to always assume the worst case will happen and rates will be higher in 10 years. If they aren’t higher, then that’s just a bonus.

Thanks for the reply, it's really helpful!

This SFR I'm buying is in Austin and I'm looking for appreciation potential instead of cash flow, but I don't want negative cashflow either, so I put down more money to make $300+ per month cash flow (probably a stupid idea though)

My plan for 10 year is to buy as many rental properties as possible. and hopefully when 10th year comes, if the interest rate is still low, I refinance, if not, some properties might appreciate enough and I can simply sell them to pay off my primary home. I'm planning to buy 4 ~ 5 investment properties a year so I think that might be doable.

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Originally posted by @Matthew Insley:

I am a new investor also. I suggest small multi-unit properties to get started. It gives you more of a cushion for vacancy, repair, etc. I would never put 50% down on an investment property. The whole point of real estate investing is leverage increasing your ROI. I would also consider talking to other banks about fixing your primary home's interest rate before rates go up too much. If you cannot afford multi-units in your area, consider investing where the numbers make more sense.

I live in Seattle and the house price here is already crazy, and since Austin TX is seeing some new tech companies coming in, I'm buying my first investment SFR over there. Due to the high property tax, if I don't put 50% down, the cash flow will be very minimal. I considered multi-unit but chose SFR due to appreciation potential. Thanks for the suggestion, I probably need to shop around for rates to bring down the cost as well.

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Originally posted by @Justin Larese:

investment properties will have higher rates, but if you say you are looking for a 2nd home and its further than 50 miles you should get a lower rate. Especially if your bringing 50% to the table. Unless your credit is not great, or your debt to income ratio is throwing you off. Is the property a single family or multi?

I live in Seattle and the rental property I'm buying is a new SFR in Austin, TX. My credit score is 780 and debt to income ratio is not bad at all (total debt is 600K and household income is 500K a year before tax), so I think it's probably because I didn't select "2nd home" when quoting mortgage, but can I do that (saying it's 2nd home but purpose is 100% rent it out)

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Originally posted by @Justin Larese:

Best advice I have heard on bigger pocket is simple is better, and those who fail usually get too fancy. Whatever you decide make sure you are confident in the decision. Youre able to put 50% down and the best they can do is 5%? Is the property too close to be considered a 2nd home?

Thanks for the reply, I'm shocked at the mortgage rate as well, I was quoting for investment property as that's out of state, but both local bank and out of state bank quoted me roughly around the same rate of 5%, that's crazy high

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Hi All!

I was planning to buy my first rental house at $300K with 50% down, and after just talking to a banker from Chase private client, there's seem to be a better way to do that.

My current primary house:

Value: 1100K

own: 560K

rate: 3%, started at 08/2016 with 7/1 ARM

Investment house:

Price 290K

If I take another loan for investment house, the rate would be 5.00 for 30 year fixed. And the banker told me if I join Chase private client, they can do a cash-out refin on my current house and extract $290K out of it, so I can pay the investment house all cash, and they can do 3.75 for a 10/1 ARM loan.

Should I do it? The benefit I can think of is that I'm getting a much lower rate because it's my primary house, the cons is that I'm taking a big loan, and even it has lower rate, the principal is much higher.

My current interest will be 560K (rate of 3) + 150K (rate of 5, if I put 140K down), if I do cash out refin, it would be (850K rate of 3.75)

Any suggestion is appreciated!

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All Forum Posts by: Shuo Wang

Shuo Wang has started 1 posts and replied 9 times.

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property

Post: Seeking suggestion on first rental property